Britannia announced this in a statement to the Bombay Stock Exchange today.

Alagh had been the face of Britannia in the business press for more than a decade, and it is to his credit that the biscuits company has expanded and grown to the extent it has into a leading purveyor of bakery and dairy products.

Alagh had earlier said that he would not seek an extension of his tenure, which was to end in February 2004. He had joined Britannia in December 1974 and was the company's managing director for over a decade.

The company's board, headed by chairman Nusli Wadia, considered Alagh's communication about not seeking an extension beyond the contract term at a meeting held in Mumbai late on Tuesday night and decided to terminate his employment from 4 June, rediff.com reported.

A report in the Hindu had hinted that Bombay Dyeing managing director Ninu Khanna might take over from Alagh to head Britannia.

While, there is no official word yet as to who will be Alagh's successor, market rumours point to Nusli Wadia's younger son Jeh Wadia as the most likely candidate to take charge at some point. Till then COO Nikhil Sen will be managing the day-to-day running of the company, is the market buzz.